“We submitted to the Minister that the key to arresting the long-term decline in investment rate from over 35 per cent to below 30 per cent lies in boosting investors’ confidence in the country’s medium-term growth prospects and overall environment for doing business,” the Federation of Indian Chambers of Commerce and Industry (Ficci) said in a statement.

“The immediate solutions include a reduction in the interest rate, passing this reduction to consumers and investors, and a sharp depreciation of rupee,” it said.

The industry body expressed concern that the recent increase in consumption demand is being increasingly met through imports rather than higher capacity utilisation.

“Ficci welcomes the Minister’s announcement that a Regulatory Review Committee will be set up to examine how regulatory institutions may be coming in the way of increased investment. We also welcome the Commerce Ministry’s decision to set up an India-China Working Group to address the problem of the huge bilateral trade deficit,” it said.

The industry body also welcomed the Ministry’s decision to create an Investment War Room to monitor investment in the country.

It urged the government to build a stronger partnership with the private sector so that the latter once again becomes a driver of growth and a generator of employment in the country.